Is this logic sound?

It looks like the main thing is that your parents would have to hold the property for a minimum of two years in order to convince the IRS you weren't engaging in cost swapping. 

@Travis Moe Thanks, These events sound interesting!

Our property had shown signs of termite damage to a structural beam during the initial inspection, and I paid for both a structural engineer (to verify the beam’s integrity was sound) and a termite inspector (to verify there was no active infestation).  

Mostly from when I started investing in RE) Honestly, that sounds about right.

Thanks Kevin I have not done that yet just due to the fact that I wanted to get a little bit of a knowledge base so I don’t sound incompetent.

It sounds like you are taking action if you're getting told 'No'.

I agree with Dave, a 4 family will get you the most bang for your buck, and still allow for you to buy FHA.That sounds great!

All sounds good...my best purchases were from people with “ past substance issues”.  

I think your ideas are sound.